Vegan Food Group (VFG), the UK parent company of brands such as VFC, Meatless Farm, and Clive’s, has made a strategic move by selling its manufacturing facility in Germany to the New Originals Company, a tofu specialist. This transaction involves the transfer of select assets, brands, and production capabilities for an undisclosed sum, showcasing VFG’s focus on streamlining operations within the food and beverage industry.
The facility, located in Wiesbaum, was acquired by VFG in February when it purchased the Germany-based vegan manufacturer, Tofutown. By divesting this plant, VFG aims to enhance its expansion efforts at the more extensive Lüneburg facility. This site serves as the primary production hub for VFG’s plant-based offerings in Germany and is regarded as crucial for the company’s long-term growth strategy.
Looking ahead, VFG plans to sustain a commercial relationship with New Originals, enabling the latter to utilize VFG’s extensive distribution channels across Europe. Although VFG has sold the Wiesbaum facility, tofu products remain a significant focus, with new product launches slated for Q1 2025.
CEO Dave Sparrow emphasized, “This transaction enables us to optimize our operations while ensuring continued production of high-quality tofu products through the New Originals Company’s expertise in this field.” He further stated that this decision reflects VFG’s commitment to scaling its plant-based portfolio while maintaining a strong presence in the tofu marketthrough partnerships with New Originals.
Founded by the Lunter family, who have been involved in tofu manufacturing since 1991, the New Originals Company is backed by Raiffeisen Landesbank Oberösterreich, an Austrian investment bank. CEO Matthias Krön remarked, “Bernd Drohsin and the Tofutown team in Wiesbaum have been pioneering organic tofu and tofu products in Europe since the 1980s.”
The collaboration with the New Originals Company is expected to facilitate the further development of VFG’s tofu product line. As Sparrow pointed out, this divestment will enable VFG to allocate more resources toward innovation and production expansion at the Lüneburg site while leveraging the expertise of New Originals.
VFG, previously known as VFC Foods, was established in 2020 by Adam Lyons and Matthew Glover, co-founder of the Veganuary campaign. The company has experienced growth through mergers and acquisitions, including the recent acquisition of the Meatless Farm brand after its owner entered administration.
In summary, this strategic asset sale by VFG marks a significant step in increasing operational efficiency and expanding its presence in the competitive food and drink market. By focusing on the development of its plant-based products and maintaining strong partnerships, VFG is well-positioned to navigate the evolving food and beverage industry trends.
